Financials

in Fact sheets

Operating revenue
2015 in $M 2014 in $M 2013 in $M
Operating revenue (GAAP) 37,864 38,901 38,279
Operating expense
2015 in $M 2014 in $M 2013 in $M
Operating expense (GAAP) 32,698 36,528 37,030
Less: Special operating expense −326 −443 −520
Equals: Operating expense, excluding special operating expense (non-GAAP) 32,372 36,085 36,510
Less: Employee salaries and related costs −9,713 −8,935 −8,625
Equals: Non-labor operating costs 22,659 27,150 27,885
Operating income
2015 in $M 2014 in $M 2013 in $M
Operating income (GAAP) 5,166 2,373 1,249
Add: Operating expense: special charges 326 443 520
Equals: Operating income, excluding special operating expense (non-GAAP) 5,492 2,816 1,769
Net income
2015 in $M 2014 in $M 2013 in $M
Net income (GAAP) 7,340 1,132 571
Add/less: Operating and nonoperating expenses: special charges, net of income taxes −2,613 507 513
Add/less: Economic hedge adjustment: MTM gains/losses from fuel hedges settling in future periods −8 244 −84
Add/less: Economic hedge adjustment: Prior period gains/losses on fuel contracts settled in the current period −241 83 39
Equals: Net income, excluding operating and nonoperating special charges, net and reflecting economic hedge adjustments (non-GAAP) 4,478 1,966 1,039

Operating and nonoperating expenses: special charges

Operating and nonoperating special charges, net
2015 in $M 2014 in $M 2013 in $M
Operating expense: special charges 326 443 520
Severance and benefit costs 107 199 105
Impairment of assets 79 49 33
Integration-related costs 60 96 205
Labor agreement costs 18 0 127
Sale of assets and other special gains/losses, net 62 99 50
Nonoperating expenses: special charges, net of income taxes
2015 in $M 2014 in $M 2013 in $M
Nonoperating expense: special charges, net of income taxes −2,939 64 −7
Loss on extinguishment of debt and other, net 202 74 0
Income tax benefit related to special charges −11 −10 −7
Income tax benefit associated with valuation allowance release −3,130 0 0
Total operating and nonoperating expenses: special charges, net of income taxes
2015 in $M 2014 in $M 2013 in $M
Total operating and nonoperating special charges, net −2,613 507 513

Notes: Pursuant to SEC Regulation G, UAL has included the above reconciliation of reported Non-GAAP financial measures to comparable financial measures reported on a GAAP basis. UAL believes that adjusting for special items is useful to investors because special charges are non-recurring charges not indicative of UAL’s ongoing performance. In addition, the company believes that adjusting for MTM gains and losses from fuel hedges settling in future periods and prior period gains and losses on fuel contracts settled in the current period is useful because the adjustments allow investors to better understand the cash impact of settled hedges in a given period. Certain prior period amounts have been reclassified to conform to the current period presentation. For additional information related to special items, see Note 16 to the financial statements included in the 2015 Annual Report Form 10-K.